Inscription: First line - "in the name of Allah the beneficent the Merciful", followed by some quotes from the Koran, spells, chanting the name of the Prophet and Imam Ali etc.
This is a women's ornament, worn on the chest, usually it was the Central medallion chain necklace with cylindrical amulets on the sides

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Dear Aleksandr; This is a fabulous amulet. Having seen quite many of them, this piece has one of the nicest engravings! You can see my piece (which are two combined necklaces with such amulets) on this site. Congratulations on a very beautiful find and for such a great description! I should have you visiting my home to assist me doing the same with my jewelry (just joking!)...